It gives me immense pleasure to be communicating to you for the first time sinceassuming charge as Chairman & Managing Director. Energizing the Future andparticipating in India's growth story makes for a great aspiration for any company And atBPCL we believe that each passing day takes us a step closer to achieving this vision.
Over the years the Company has been delivering excellent results on all fronts and Iam pleased to state that this year too we have sustained that trend. BPCL has recorded anall-time high profit after tax of ' 8039.30 crores during 2016-17. The Board has declareda dividend of 325% this year the highest ever in the history of the Company. Shareholdershave also been rewarded with an issue of bonus shares in the ratio of one new share forevery two shares held. Thus a Bonus issue has been declared for the second year in a row.Further I am delighted to bring to your notice that during 2016-17 the marketcapitalization of BPCL has crossed the ' 100000 crore mark attaining the peak level of '114751 crores on 7th August 2017.
Numaligarh Refinery Limited BPCL's subsidiary company registered an impressive profitafter tax of ' 2100.17 crores during 2016-17. For the second successive year Bharat OmanRefineries Limited BPCL's joint venture company achieved excellent results with profitafter tax for the year at ' 808.13 crores.
I am also happy to share with you that the first dividend on the investment made byBPCL's wholly owned subsidiary company Bharat PetroResources Limited (BPRL) in the assetsin Russia has been received recently. With the commencement of revenue from BPRL's Russianassets and contribution flowing from some of the Indian blocks too BPRL has nowtransformed itself into a revenue generating company with assets in all phases ofupstream ranging from exploration to production.
You will be glad to know that having met the laid down criteria BPCL has applied forgrant of Maharatna status and the same is in an advanced stage of consideration by theappropriate authorities.
BPCL's flagship project the Integrated Refinery Expansion Project (IREP) at KochiRefinery for enhancing the refinery capacity to 15.5 MMTPA has been successfullycompleted as per schedule within the stipulated capital cost. With the units beingcommissioned successfully in a sequential manner the crude processing volume at therefinery has been increasing as per the designed capacity. Work on the Petrochemicalsproject at Kochi is progressing and the same is expected to be completed in the nextfinancial year.
In an attempt to explore additional sources of supply and reduce the dependence onspecific regions for meeting crude oil requirements BPCL is in the process of sourcingcrude from the Americas for the first time. In the recent past BPCL has been activelyevaluating crude oils from USA Canada and Latin America and has initiated action ofadding the technically suitable crude oils to its basket of crudes for processing in itsrefineries. The first crude parcel of 1 Million Barrels is expected to reach Indian shoresby early October.
A key strategic initiative in the previous year was the acquisition of a 21.1% stake inFino Paytech Limited the largest Business Correspondent in Asia. You will be happy toknow that Fino Paytech Limited has recently secured a Payment Bank licence from theReserve Bank of India. With this investment BPCL shall be better equipped to play aproactive role in the financial inclusion story of India and further augment its marketingprowess.
The Indian Oil Industry landscape is slated to undergo a major change with the Hon'bleFinance Minister in his 2017 budget speechhighlighting the Government's intent to bringabout consolidation in the industry. BPCL shall also evaluate the options for integrationand participate in the process as appropriate.
GST implementation has been impeccably executed in BPCL ensuring requisitecompliances disseminating knowledge imparting necessary training and providing a strongsupport network across the country.
I am also pleased to share with you that the daily change in price of petrol and dieselacross the country is being effectively executed. BPCL has deployed several measures toensure smooth implementation. Multiple methods have been adopted to communicate informand educate the dealer network and the customers about the daily price revisionsleveraging the media the Company's automation systems and the telecom network.
In our endeavour to capture the consumer opportunity BPCL launched a series ofbeyond-fuel initiatives catering to the rural highway and urban markets furtherleveraging our existing strengths and capabilities. Extensive pilots were successfullyconducted around the themes of Rural Market Place Integrated Fleet Management PersonalTravel Offerings and Urban Household Solutions. The pilots have provided key insights andlearnings in terms of customer traction available prospects and impact on fuel sales. Weenvisage that such initiatives shall be crucial to driving profitability in the fastdeveloping competitive scenario in the oil industry.
BPCL shall continue with its robust investment plans over the next few years focusingon developing refining and marketing infrastructure. Conscious and well deliberateddecisions are also being made in the upstream business for investments in high potentialexploration assets with a trusted partner. Investments are being made in the Gas &Petrochemicals business given the growth potential with a vision to attain leadership inmidstream and downstream gas and petrochemical intermediates. Further BPCL is in theprocess of utilizing its existing network to promote generation of renewable sources ofenergy. With the Indian Oil & Gas sector having opened up the times ahead areexpected to be challenging yet exciting. With forays into diverse verticals BPCL is incomplete readiness to embrace these challenges and emerge victorious creating tremendousvalue for all stakeholders.
I fully recognize the confidence placed in the Management of BPCL and I thank you forparticipating in BPCL's journey. I assure you that with the relentless efforts of ouremployees the unwavering support of our business partners and the valuable guidance ofthe Ministry of Petroleum & Natural Gas your Company is on the path of unprecedentedgrowth.
Chairman & Managing Director